McD's March sales strong: analysts

(Crain's) -- McDonald's Corp. posted strong March sales at U.S. restaurants, according to estimates from two analysts.

Analyst Mark Kalinowski's survey of 213 U.S. McDonald's found average sales increased 5.1% in March from the year-earlier period. McDonald's U.S. sales increased 2.8% in February compared with February 2008, but the restaurant chain said the rise would have been 6.8% in February if it weren't for the month having one less day than in 2008. Global sales increased 1.4% in February, or about 5.4% without the calendar shift.

Larry Miller, an analyst in Atlanta at RBC Capital Markets, estimates U.S. sales rose 3.9% in March, and that McDonald's global sales rose 3.5% in March compared with a 5.2% rise in March 2008.

Oak Brook-based McDonald's reports March sales and first-quarter results on April 22. A company spokeswoman declined to comment ahead of the release. The fast-food franchise's sales have remained strong during the economic downturn as it continues to promote its Dollar Menu.

Mr. Miller wrote in a report last week that discounts are helping boost U.S. sales and that the test of a beef snack wrap in Houston is "being well-received."

Mr. Miller reports he has heard positive comments about McDonald's introduction of specialty coffees, the largest menu expansion in 30 years.

But New York analyst Mr. Kalinowski's survey includes negative comments from franchisees about the costs and results of the specialty coffees. Mr. Kalinowski works on the survey with franchisee consultant Dick Adams, who has raised questions about McDonald's asking franchisees to spend as much as $100,000 to implement the specialty coffees.

McDonald's started rolling out the lattes and mochas last year, and expects to get them in most stores by May, when it begins national advertising.